Although the USO closed right at its low last evening, poised to decline towards my optimal target of 44, Saudi jawboning and innuendo triggered an immediate upside reaction this morning, which has helped propel prices from under 45 to a new January recovery high at 46.65. So much for re-entering the long side at or below 44. At this juncture I certainly do NOT intend to chase strength, especially since in each of the last four sessions, the USO has traversed a $1.50 range. Let’s see if today’s $1.50 upmove has staying power and legs for the rest of today and tomorrow.



Mike Paulenoff is a 26-year veteran of the financial markets and author of MPTrader.com, a real-time diary of his technical chart analysis and trading alerts on all major markets. For more of Mike Paulenoff, sign up for a free 15-Day trial to his MPTrader Diary by clicking here.